Loan Terms Can this amount increase after closing?

Loan Amount $109,805.63 NO

Interest Rate 4.375% NO

Monthly Principal & InterestSee Projected Payments Below for Your Total Monthly Payment

$548.25

NO

Does the loan have these features?

Prepayment Penalty NO

Balloon Payment NO

TRANsACTION INfORMATIONBORROweR James White and Jane Johnson 123 Anywhere Street, Apt 678 Anytown, PA 12345seLLeR John Wilson 123 Somewhere Drive Anytown, PA 12345LeNDeR Butternut Bank

LOAN INfORMATIONLOAN TeRM 30 years PuRPOse PurchasePRODuCT Fixed RateLOAN TyPe Conventional FHA

VA _____________MIC # 56789LOAN ID # 1330172608

seTTLeMeNT INfORMATIONDATe 1/24/2012AgeNT ABC SettlementfILe # 01234PROPeRTy 456 Avenue A Anytown, PA 12345sALe PRICe $123,500

Closing Costs

Cash to Close $27,625.00 Closing Costs include $5,519.53 in Settlement Fees. See details on page 3.

SETTLEMENT DISCLOSURE PAGE 1 OF 5

Projected Payments

Payment Calculation years 1-7 years 8-30

Principal & Interest $548.25

+ 55.82

+ 422.94

$548.25

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+ 422.94

Mortgage Insurance

Estimated EscrowAmount Can Increase Over Time

estimated Total Monthly Payment $1,027.01 $971.19

estimated Taxes, Insurance & AssessmentsAmount Can Increase Over TimeSee Details on Page 4

$551.25a month

escrow. Your escrow payment covers your taxes, insurance & assessments on the property.

Partial escrow. Your escrow payment only covers the property costs in Section F on page 3. Some of your costs are not in escrow.

No escrow. You must pay all of your taxes, insurance & assessments separately from your loan payments.

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This form is a statement of final loan terms and closing costs. Compare this document to your Loan Estimate.settlement Disclosure

what Changed?

INCReAses OveR LIMITs estimate final Over Limit?

Costs That Could Not Increase

A. Origination Charges $2,769.00 $2,810.90yes

$41.90D. Transfer Taxes $2,470.00 $2,470.00 NO

Costs That Could Not Increase by More Than 10% in Total

B. Services You Did Not Shop For $2,276.00 $2,583.63yes

$43.03D. Recording Fees $370.00 $370.00

TOTAL $2,646.00 $2,953.63

BORROweR’s TRANsACTION

Due from Borrower at Closing $140,430.63

01 Closing Costs Paid at Closing by Borrower (H) $8,782.4102 Closing Costs Financed in Loan Amount (H) $4,830.6303 Sale price of property $123,500.0004 Sale price of any personal property included in sale050607 Other Credits & Adjustments08 Items Prepaid by Seller that are Due from Borrower09 City/town taxes 1/24/12 to 12/31/12 $3,030.0910 County taxes to11 Assessments to12 HOA dues 1/24/12 to 3/31/12 (quarterly) $287.5013 14

Paid Already or on Behalf of Borrower at Closing $112,805.63

01 Deposit $3,000.0002 Principal amount of borrower’s new loan $109,805.6303 Existing loan(s) assumed or taken subject to04 05 06 Other Credits & Adjustments07 08 09 10 Adjustments for Items Unpaid by Seller11 City/town taxes to12 County taxes to 13 Assessments to14 15 16

Cash to Close x from To Borrower $27,625.00Total Due from Borrower at Closing $140,430.63 Total Paid Already or on Behalf of Borrower at Closing – $112,805.63

seLLeR’s TRANsACTION

Due to seller at Closing $126,817.59

01 Sale price of property $123,500.0002 Sale price of any personal property included in sale03 04 05 06 07 08 Items Prepaid by Seller that are Due from Borrower09 City/town taxes 1/24/12 to 12/31/12 $3,030.0910 County taxes to11 Assessments to12 HOA dues 1/24/12 to 3/31/12 (quarterly) $287.5013 14

Due from seller at Closing $87,807.87

01 Excess deposit02 Closing costs paid at closing by seller (H) $8,645.0003 Existing loan(s) assumed or taken subject to04 Payoff of first mortgage loan $79,162.8705 Payoff of second mortgage loan06 07 08 09 10 Adjustments for Items Unpaid by Seller11 City/town taxes to12 County taxes to 13 Assessments to14 15 16

Cash from x To seller $39,009.72Total Due to Seller at Closing $126,817.59Total Due from Seller at Closing – $87,807.87

summaries of Transactions

SETTLEMENT DISCLOSURE PAGE 2 OF 5

CALCuLATINg CAsh TO CLOse estimate final

Settlement Fees $5,170.00 $5,519.53A. Origination Charges $2,769.00 $2,810.90B. Services You Cannot/Did Not Shop For $865.00 $2,583.63C. Services You Can/Did Shop For $1,536.00 $125.00

Settlement Costs $4,406.37 $8,093.51D. Taxes & Other Government Fees $2,840.00 $2,840.00E. Prepaids $464.30 $1,935.38F. Initial Escrow Payments at Closing $902.07 $846.82G. Other Costs $200.00 $2,471.31

Down Payment/Funds from Borrower $18,525.00 $18,525.00Deposit – $3,000.00 – $3,000.00Cash to Borrower $0 $0Seller Credits $0 $0Other Credits and Adjustments $0 $3,317.59Closing Costs to be Financed $0 – $4,830.63

Cash to Close $25,101.37 $27,625.00

INTeResT RATe ChANges estimate final

Interest rate 4.375% 4.375%Can interest rate change after closing? NO NODid adjustable rate terms change? N/A

Closing Cost Details

SETTLEMENT DISCLOSURE PAGE 3 OF 5

Borrower-Paid seller-Paid Paid by OthersPaid at

ClosingPaid Before Closing

Financed in Loan Amt.

Paid at Closing

Paid Before Closing

seTTLeMeNT feesA. Origination Charges $2,810.9001 .875 Point(s) $960.9002 Underwriting Fee $800.0003 Processing Fee $300.0004 Verification Fee $75.0005 Rate Lock Fee $525.0006 Desk Review Fee $150.00B. services Borrower Did Not shop for $2,583.6301 Credit Report Fee to Credit Co. $30.0002 Appraisal Fee to Local Appraisal Co. $335.0003 Document Preparation Fee to Collateral Research Inc. $55.0004 Tax Status Research Fee to Collateral Research Inc. $25.0005 Flood Determination Fee to Collateral Research Inc. $35.0006 Tax Monitoring Fee to Monitoring Services Inc. $15.0007 Flood Monitoring Fee to Monitoring Services Inc. $10.0008 Lender’s Attorney to BF Law Group $325.0009 Title – Closing Protection Letter to Regional Title Co. $75.0010 Appraisal Mgmt. Co. Fee to AMC Co. $100.0011 Title – PA Inclusive Title Fee to Regional Title Co. $1,076.6312 Lender Coverage $109,805.63 / Owner Coverage $123,50013 Title – Settlement Agent Fee to Regional Title Co. $310.0014 Title – Courier Fee to Quick Delivery Co. $32.0015 Survey Fee to ABC Surveys Co. $160.00C. services Borrower Did shop for $125.0001 Pest Inspection Fee to Home Pest Co. $125.0002 03 settlement fees (A + B + C) $1,370.90 $0 $4,148.63Lender CreditsTOTAL BORROweR-PAID seTTLeMeNT fees $5,519.53

seTTLeMeNT COsTsD. Taxes and Other government fees $2,840.0001 Commonwealth of PA Transfer Tax $617.50 $617.5002 City of Philadelphia Transfer Tax $1,852.50 $1,852.5003 Recording Fees Deed: $200.00 Mortgage: $170.00 $370.0004e. Prepaids $1,935.3801 Mortgage Insurance Premium ( __mo.)02 Homeowner’s Insurance Premium ( 12 mo.) to XYZ Ins. Co. $682.0003 Flood Insurance Premium ( 12 mo.) to Flood Safe Co. $1,160.0004 Property Taxes ( __mo.) 05 Prepaid Interest $13.34 per day from 1/24/12 to 1/31/12 $93.3806 f. Initial escrow Payment at Closing $846.8201 Mortgage Insurance per month for mo.02 Homeowner’s Insurance $56.83 per month for 3 mo. $170.4903 Property Taxes $269.44 per month for 3 mo. $808.3204 Flood Insurance $96.67 per month for 3 mo. $290.0105 HOA/Condo/Co-op per month for mo.06 Aggregate Adjustment – $422.00g. Other Costs $2,471.3101 $3,087.50 to Reliable Realty Co./ $3,087.50 to Realty Pros LLC $6,175.0002 Real Estate Broker Administration Fee to Reliable Realty Co. $200.0003 Structural Inspection Fee to Home Engineering Corp. $325.0004 Inspection Fee to Inspector Home Co. $245.0005 HOA Processing Fee to 456 HOA $500.0006 Home Warranty to Warrant Row Co. $211.3107 Mobile Signing Agent to Quick Signing Co. $150.0008 Borrower Attorney to Law Phil LLP $840.00settlement Costs (D + e + f + g) $7,411.51 $0 $682.00TOTAL BORROweR-PAID seTTLeMeNT COsTs $8,093.51

h. TOTAL CLOsINg COsTs (settlement fees + settlement Costs) $8,782.41 $0 $4,830.63 $8,645.00TOTAL BORROweR-PAID CLOsINg COsTs $13,613.04

AssumptionIf you sell or transfer this property to another person

We will allow, under certain conditions, this person to assume this loan on the original terms.

We will not allow assumption of this loan.

Demand feature Your loan has a demand feature, which permits the lender to demand early repayment of the loan. If this loan has a demand feature, you should review your note for details.

Your loan does not have a demand feature.

Late PaymentIf your payment is more than 15 days late, we will charge a late fee of 5% of the monthly principal and interest payment.

Negative Amortization (Increase in Loan Amount)Under your loan terms, you

are scheduled to make monthly payments that do not pay all of the interest due that month. As a result, your loan amount will increase (negatively amortize), and your loan amount will likely become larger than your original loan amount. Increases in your loan amount lower the equity you have in this property.

have the option of making monthly payments that do not pay all of the interest due that month. If you do, your loan amount will increase (negatively amortize), and, as a result, your loan amount may become larger than your original loan amount. Increases in your loan amount lower the equity you have in this property.

do not have a negative amortization feature.

Partial Payment Policy We will accept payments that are less than the full amount due (partial payments). We will apply partial payments:

We will not accept partial payments.

security InterestYou are granting us a security interest in 456 Avenue A, Anytown, PA 12345. You may lose this property if you do not make your payments or satisfy other obligations for this loan.

SETTLEMENT DISCLOSURE PAGE 4 OF 5

Loan Disclosures

escrow Account InformationFor now, your loan

will have an escrow account (also called an “impound” or “trust” account) to pay the property costs listed in Section F on page 3 for you. If we fail to make a payment, we may be liable for penalties and interest. Without an escrow account, you would pay these costs directly, possibly in one or two large payments a year.

Year 1 Property Costs

Estimated Property Costs Escrowed

$5,075.28 The total costs over year 1 of items listed in Section F on page 3.

Initial Escrow Payment

$846.82 The payment in Section F on page 3 is a cushion for the escrow account.

Monthly Escrow Payment

$422.94 The amount included in your total monthly payment.

Estimated Property Costs Not Escrowed

$1,539.72 Property costs that are not escrowed: HOA dues

You may have other property costs not listed here.

Estimated Costs

Year 1, Estimated Property Costs

Without an escrow account, you would pay these costs directly, possibly in one or two large payments a year.

Fee for No Escrow Account

will not have an escrow because ___ you declined an account ___ we do not offer escrow accounts. You must directly pay your property costs, such as property taxes and homeowner’s insurance.

Contact us to ask whether your loan can have an escrow account.

In the future, Your property costs may change and, as a result, your escrow pay-ment may change. You may be able to cancel your escrow account, but if you do, you must pay your property costs directly unless you create a new escrow account. If you fail to pay your property taxes, your state or local government may (1) impose fines and penalties or (2) place a tax lien on this property. If you fail to pay any of your property costs, we may• addtheamountstoyourloanbalance,• addanescrowaccounttoyourloan,or• requireyoutopayforpropertyinsurancethatwebuyonyour

behalf, which likely would be more expensive and provide fewer benefits than what you could buy on your own.

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Contact Information

Confirm Receipt

Other Disclosures

Appraisal CopyIf you paid for a written appraisal or valuation of the property, we are required to give you a copy at no additional cost at least 3 days before closing. If you have not yet received it, please contact John Smith at Butternut Bank at 111-222-3333.

Contract DetailsSee your note and security instrument for information about •whathappensifyoufailtomakeyourpayments,•otherwaysyoucandefaultontheloan,•situationsinwhichwecanrequireearlyrepaymentoftheloan,and•therulesformakingpaymentsbeforetheyaredue.

Liability after foreclosureIf your lender forecloses on this property and the foreclosure does notcover the amount of unpaid balance on this loan,

state law may protect you from liability for the unpaid balance. If you refinance or take on any additional debt on this property, you may lose this protection and be liable for debt remaining after the foreclosure. You may want to consult a lawyer for more information.

state law does not protect you from liability for the unpaid balance.

RefinanceRefinancing this loan will depend on your future financial situation and market conditions. We cannot guarantee that you will be able to refinance this loan.

Tax DeductionsIf you borrow more than this property is worth, the interest on the loan amount above this property’s fair market value is not deductible from your federal income taxes. You should consult a tax advisor for more information.

By signing, you are only confirming that you have received this form. You do not have to complete this transaction, even if you have signed or received this form.

Applicant Signature Date Applicant Signature Date

SETTLEMENT DISCLOSURE PAGE 5 OF 5

Total of Payments. The amount you have paid after you have made all 360 payments as scheduled. $354,038.18

finance Charge. The dollar amount the loan will cost you. $94,978.46

Amount financed. The amount of credit provided to you or on your behalf. $106,801.32

Annual Percentage Rate (APR). This is not your interest rate. This rate expresses your costs over the loan term. 4.92%

Total Interest Percentage (TIP). This rate is the total amount of interest that you will pay over the loan term as a percentage of your loan amount. 79.75%

Average Cost of funds (ACf). This represents the average cost of borrowing funds to make mortgage loans for financial institutions that report to the Federal Home Loan Bank of San Francisco. 1.20%

Loan Calculations

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?Lender Mortgage Broker Real estate Broker Real estate Broker settlement Agent

Name Butternut Bank Reliable Realty Co. Realty Pros ABC Settlement

Address 4321 Liberty Blvd.Somecity, PA 54321

1776 Franklin St.Ste 405Anytown, PA 12345

3456 Benjamin Blvd. Anytown, PA 12345

5432 Liberty Blvd. Ste 405Somecity, PA 54321

NMLs ID 111111

Contact John Smith Jon Anderson Steve Walsh Nancy Jones

Loan Officer NMLs ID

487493

email jsmith@butternutbank.com

janderson@RRealty.com

swalsh@realtypros.com

njones@ ABCsettlement.com

Phone 111-222-3333 444-555-6666 555-666-7777 666-777-8888

Questions? If you have questions about the loan terms and costs on this form, contact your lender. To get more information or make a complaint, contact the Consumer Financial Protection Bureau at www.consumerfinance.gov. ?